Essay on the Music Industry

Music Industry Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of streaming music services on different area of music industry...............................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Streaming music is a type of approach that can be used in the music industry to increase
the business all over the world. This type of steaming music is basically used the services such
as Apple music, YouTube Music premium, Amazon prime / Music Unlimited etc. This essay
will discuss about the streaming music service on the different areas of music industry.
Furthermore, it will describe that affect how the record label release and music market.
Afterwards, this essay will describe that the financial condition impact on the music artist in
terms of competition and market value. However, Streaming music services are impacted on the
traditional download store because it is the modern technology to provide the best quality of
service related video, audio etc. At last, This will discuss about the companies who are already
broke their deals with the other streaming.
MAIN BODY
Impact of streaming music services on different area of music industry
Streaming music service is a process for accurately streaming the audio to deliver the
sound and without requires for downloading files from the internet. There are different type of
streaming music service such as Apple music, YouTube Music premium, Amazon prime / Music
Unlimited etc. These are the different service provided by companies to the customers. People
can choose the music according to the need and requirement (Zhang and et.al., 2016).
In today's music industry, Streaming service is working for majority of stakeholders. In
this way, music industry has used the latest trends that help for gathering all necessary
information related the music values, level and trends. The new technologies and services are
likely to have impact on the business process of music industry (Gamble, Brennan and McAdam,
2017). The revolution of music business is not a new customer facing format and visionary
product but it will create a financial multifaceted and their implications. It is important for
acknowledge about the music streaming service that help for people to provide the facility
regarding music, videos etc. Sometimes, Streaming music service mainly impact on the new
ecosystem. It can be found that energy are sucking up by playing a music through the steaming
services. This type of music is maintained the dynamic changing and also protect the copyright
ownership. Streaming music is the best medium to create a good relationship with the people. It
also making relations through the artists or other traditional intermediaries. Streaming music
service helps for music industry to increase the digital revenue which cross 11% to $826m.

Streaming music services impacts on the two different areas of music industry such as Revenue
management and digital distribution etc.
Music industry can be used the streaming music services that help for business process to
increase the popularity and dominance. It also currently holds over the streaming global market.
According to service, people can easily listen the music, video in proper manner. It also
providing the best quality of speed. Digital distribution is another area in the industry to use the
streaming service for providing the better quality of music to the customer. On the other hand,
Music industry has gone through the different changes due to modern innovative technology. It
has both positive and negative impact on the industry (Aguiar and Waldfogel, 2018). For
Example- Piracy has an issue in the music industry since the beginning. In this way, the original
music was available on CD's before release. One of the another form of Music piracy occurred
when the customer would produce the recording of songs and sell on the tapes. Initially, CD has
become most popular format of audio files such as Music. Another second generation of music
piracy. It has become music easier to acquire the music through free online medium. As a result,
it led to increase in the piracy in music industry (Duanmu and et.al., 2017). Nowadays
Streaming music services such as Spotify. It is the most popular streaming service that offers a
premium along site a paid service. It provides the free subscription and allows for listen music.
It has become the recent case of music piracy. It offers the free subscription that allows for user
to listen the music. In this way, music industry has distributed facility by using Apple music and
so on.
There are many laws related the copyrights and payment of artist which have not updated
to deals with the Steaming music services. It is needed for music industry to manage the
structure that evolved in the century to facilitate the lawful exploitation of music and Spotify
recording. In this way, Spotify music service is trying to compete with piracy. This type of
streaming music service has been consistently attempting to combat the music piracy. Many
companies are used the remix of old songs so that they provide the facility to customer when
they can listen the music through Streaming music service such as Spotify. (Vonderau, 2019). In
this way, many peoples are attracted towards steaming music. On the other hand, Streaming
music service helped the industry to grow by the Double digits in 2017. This services
continuously increasing the business in UK and also increasing the revenue or profit rate. In
2017, The revenue of music industry grew to $8.72 Billion. It is not the highest point but number

is up over $1.2 Billion from 2016. It should not be surprise that streaming service vast the
majority for expansion.
Does Affect how record label release and market music
A record label is basically a trademark and brand that associated with the marketing of
music videos and recording. Many Music industries are using this concept to increase the value
of music in global marketplace. The record label have personal interest in terms of growth and
development by using the streaming music services. They also invested in the services for
increasing the value of music industry in marketplace (Hamza and Hefeeda, 2016). It is
positively impacted on the market music and release record label because It is important concept
that can use the music industry to promote the music, videos etc. Similarly, streaming service
Spotify pays back seventy percent in royalties which in the most cases goes to the record label
and distributor. Some Artist has owned recording and their average $0.0004 per steam of music
on Spotify. The label is typically based on the specific terms and conditions of contract because
it controls the music type and record.
Record label is negatively impact on the artists when It also dominant force the
successful artists and also make a power to break the music artist. It depends on the investing
money for promoting the music (Tunturipuro, 2015). Many agencies are launched their own
services in market by using record label for promotions. In this way, artists and other staff will
face struggle and problem with the CD Sales for years. Even the record label are losing the
distribution which influences the territories.
It has summarized that it is mainly positively impact on the record label and other market
music because in this way, companies has increased the popularity and demand in the
marketplace.

Financial impact on the artist
A job in the music company had been some of the most fun but it is more competitive in
market. There are many successful artists that can use the label for increasing their popularity in
global marketplace. Many artists contract and deals with the record company when they have to
give music away from free (Negus, 2018). In the space of decade, The music industry is
collapsed and also decreased the revenue from $ 14.6 Billion in 1990 to $ 6.2 Billion in 2010.
Many artists on larger record label do not have a proper choice on the particular music
appears on Spotify. In this way, many artists are speaking against the service that have led the
music industry. This will directly impact on the financial condition of companies. It also
decreases the revenue and profitability of business. Another, main negative part is effect the
freemium service on the artist album sales and royalty distribution. As a result, it affects the
financial terms of business in marketplace.
For Example- Jones is signer and writer when signed to the label but she is not successful
artists, she plays mid size company in London but in case there debut album failed to make the
Top level But using a streaming music service has been streamed more than 50 times. In this
way, it will increase the revenue from a thousand to pounds. After few years, with low sales, she
would have dropped the week and came out.
Streaming musics impact on the traditional download stores
Internet Streaming music has become the largest source of global recorded music that
sales the revenue every years from service such as Apple Music, Spotify etc. Streaming music is
basically an advancement of technology for providing the best quality of service regarding the
audio, videos etc. (Nunes and et. al., 2018). It will create playlists to subscribe to download
individual track for the offline listening. Many people are feeling embraced to download the
music so that they can shift towards the streaming for increasing the digitization in marketplace.
Traditional downloading is outdated things which is based on the physical formats In
2011 but streaming music service were modern ideas so that many people can use them. It is the
latest trend in international market.
Streaming music impact on the traditional download store because steaming service is the
fastest method for providing the songs before launching in different service. Currently, Many
customers can use the streaming music service because it is very reliable to listen the music
through Smart applications. It is free to download the music through Spotify, Apple etc.

Companies can break deals with the streaming music on royalty payments
Royalty payment is basically generated for the digital reproduction, distribution of
copyrights. It applied all the music format such as streaming service, digital downloading, CD
and Cassette etc. This royalty payment is also generated for different ways such as usage and
licensing. Many organizations can break deals with the streaming music service because they
have differed from the ridiculously speed and efficient (Rayna and Striukova, 2016). It will
generate load to reduce the quality of music type. The royalty payment are the complex process
in the music world. Artist are paid the royalties usually between 8% to 30 % on the basis of retail
marketplace. It falls depends on the clout of music artist. The companies are recording the artist
only to earn royalty of particular recording that sold. On the other hand, they also providing the
discounts price to the distributor. In this way, many firms can break deals with the payment
royalty because it reduces the copies of recording which sole in the market. There are various
type of breakage when record albums were shipped out of market through distributors.

CONCLUSION
As per discussion, it concluded that Streaming music is a process that can applicable in
the music industry for increasing the revenue in global marketplace. It describes about the
streaming music service on the different areas of music industry. It also describes that affect how
the record label release and music market. It summarized that the financial condition impact on
the music artist in terms of competition and market value. However, Streaming music services
are impacted on the traditional download store because it is the modern technology to provide
the best quality of service related video, audio etc. Due to loss of payment, many companies can
break deals with the streaming music.

REFERENCES
Books and Journals
Gamble, J.R., Brennan, M. and McAdam, R., 2017. A rewarding experience? Exploring how
crowdfunding is affecting music industry business models. Journal of Business Research.
70. pp.25-36.
Aguiar, L. and Waldfogel, J., 2018. As streaming reaches flood stage, does it stimulate or depress
music sales?. International Journal of Industrial Organization . 57. pp.278-307.
Duanmu, Z and et.al., 2017. A quality-of-experience index for streaming video. IEEE Journal of
Selected Topics in Signal Processing. 11(1). pp.154-166.
Hamza, A. and Hefeeda, M., 2016, May. Adaptive streaming of interactive free viewpoint videos
to heterogeneous clients. In Proceedings of the 7th International Conference on
Multimedia Systems (p. 10). ACM.
Negus, K., 2018. From creator to data: the post-record music industry and the digital
conglomerates. Media, Culture & Society. p.0163443718799395.
Nunes, M.D and et. al., 2018. On-demand music streaming and its effects on music
piracy (Doctoral dissertation).
Rayna, T. and Striukova, L., 2016. 360° Business Model Innovation: Toward an Integrated View
of Business Model Innovation: An integrated, value-based view of a business model can
provide insight into potential areas for business model innovation. Research-Technology
Management. 59(3). pp.21-28.
Tunturipuro, I.M., 2015. Building a low-cost streaming system: Streaming and camera operating
system for live internet productions.
Vonderau, P., 2019. The Spotify effect: digital distribution and financial growth. Television &
New Media, 20(1). pp.3-19.
Zhang, J. and et. al., 2016. May. Profiling energy consumption of dash video streaming over 4g
lte networks. In Proceedings of the 8th International Workshop on Mobile Video (p. 3).
ACM.

1

2